Brokers finding it hard to source buy-to-let

In the fourth quarter 84% of brokers were unable to source a buy-to-let mortgage for some of their clients, with more than a quarter (27%) blaming affordability.

Brokers finding it hard to source buy-to-let

Brokers are finding it harder to source buy-to-let mortgages according to the latest broker sentiment survey from bridging lender MTF.

In the fourth quarter 84% of brokers were unable to source a buy-to-let mortgage for some of their clients, with more than a quarter (27%) blaming affordability.

One in five (20%) brokers were unable to get buy-to-let mortgages for clients with adverse credit and the same proportion (20%) blamed consumer buy-to-let regulations.

Tomer Aboody, director of MTF, said: “The results from our Q4 survey reflect the adverse impact of stricter affordability and stress testing from mainstream lenders on professional property investors’ ability to obtain buy to let mortgages.

“Despite uncertainty in the wider markets, we expect strong demand for bridging loans to continue in 2017.”

Two thirds (69%) of brokers opted for bridging finance after being unable to raise a buy-to-let mortgage for their clients.

Bridging finance had a good fourth quarter, with 31% of brokers noticing a rise in bridging loan volumes, up from 13% in the previous quarter.

Meanwhile three quarters of brokers experienced a rise in overall bridging loan volumes in 2016 compared to 2015, with two thirds (69%) expecting a further rise in 2017.

Brokers were uncertain over wider market conditions in 2017, as the majority (38%) said they didn’t know if market conditions would improve, with more than half (56%) saying the economy was their greatest concern.